This Blog will basically discuss economic issues, with some history and political events thrown in. The author is a mix of Conservative and Liberal impulses, with matching Authoritarian and Libertarian trends.

Monday, January 31, 2011

The Called Strikeout Rule

Everyone shakes their Heads at the federal budget, All acting like there is relatively nothing to be done about it. This is not the Case, and what is needed in a rise in Tax revenues not based on some magic economic growth which never appears. I am not sure about the Numbers on all this, but the current Round of Tax breaks to Business since the last Downturn would require a economic growth rate in the high 7s percentile for approx. some Six years to make up the lost Revenues. Everyone spouts that We need all the Tax Cut stimulus to reduce the Unemployment Rate, but even the CBO states it all will have only marginal effect on the employment; meaning less than 1%. People, I guess you can call Politicians people, all swear to the Skies that no one could get any increase in Taxes. I will remind my Readers that Politicians are paid to carry their Views of the World.

Readers have asked me How We could bypass the entrenched lobby of the No New Taxes Conservatives. I recall an old Concept whose time might have come; it is called the Called Strikeout Rule. It is a Way to get around all those bunkered special Tax exemptions and Credits. It is a simple law which can be easily understood by the majority of people, who can thereby insist their legislators adopt the Rule into law. It simply states no one in a higher Tax bracket can pay less as Tax, as had the highest amount paid by any Taxpayer within the next lowest Tax bracket.

The Called Strikeout Rule says not only that special Exemptions to Taxes can be ignored by the IRS, but also; it specifically outlines that it matters not How excellent the Tax preparation designed for tax evasion, it must conform in payment to the worst Tax preparation of the next lowest Tax bracket. Now I know that most Taxpayers will not understand the demonic aspect of such a simple law, though the Wealthy will understand hardly without Words. Loose adherence to such a Rule will raise Tax revenues by about 11%, while strict obedience and compliance is estimated by myself to potentially double the current Tax collections. Pressuring for such a law should be the profound duty of any Taxpayer tired of watching the Rich get richer while the Taxpayers are still paying the same old taxes. lgl